(Tiểu luận) topic the importation of japan from 2015 to 2022 and suggestion s for vietnam

NATIONAL ECONOMICS UNIVERSITY ADVANCED EDUCATIONAL PROGRAM AND POHE SUBJECT: INTERNATIONAL ECONOMICS Topic: The importation of Japan from 2015 to 2022 suggestions for Vietnam Name : NGUYỄN MINH HẰNG Student code : 11212054 Class : Development economics Program : Advanced Education Teacher : Ph.D Nguyễn Thường Lạng Email: langnt@neu.edu.vn, Phone number: 0846902144 Study course in : 2nd senior Student’s number :0979906893 and Email :11212054@st.neu.edu.vn GUARANTEE I hereby declare that this assignment is entirely my own work The quotations and materials used in the exercise are completely honest, sourced and guaranteed to the highest degree of accuracy to the best of my knowledge If it is not as stated above, I take responsibility for my assignment Hanoi, 14th of Feburary 2023 Students Nguyễn Minh Hằng CONTEN GUARANTEE HEADING PART 1: IMPORTS A Definition: .6 B Purposes of Import: .6 C Benefits of Import: .6 D Different types of Import: E Impacts of Import: .9 PART 2: IMPORT OF JAPAN .10 A Overall information about Japan: 10 B Japan's natural conditions: .11 C Top countries that Japan import products from: 11 D Japan import products list: .14 E Why Japanese Yen is falling? 16 PART 3: SUGGESTIONS FOR VIETNAM 18 A The relationship between Vietnam and Japan in the economy: .18 B Vietnam import activities: 19 C Recomanding solutions for Vietnam’s import: 20 CONCLUSION 25 PART 4: REFERENCES AN RELATED DOCUMENTS 26 THANK YOU 27 HEADING In the trend of opening up and international economic integration, imports are important for the development of economies The same goes for Vietnam, importing goods for industrialization and modernization, contributing to economic and technological restructuring, and promoting production and development Imports contribute to diversifying products in the market, improving living standards and quality of consumption in a number of commodities Importing some goods for which the country does not have a comparative advantage is completely beneficial compared to self-producing or exporting Besides, importing special products can absorb technology or learn some aspects of other countries When a company begins to operate on a global scale, many additional factors can have a significant impact on its success Importing and exporting goods is not only the fundamental basis of any large, successful business; it also aids in the growth and expansion of national economies Each nation is endowed with unique resources At the same time, a country's ability to develop and improve its overall economy may be limited For example, while some countries are abundant in minerals, precious metals, and fossil fuels, others are in limited supply Some countries have advanced educational systems and infrastructure, whereas others not In the trend of opening up and international economic integration, imports are important for the development of economies The same goes for Japan, importing goods for industrialization and modernization, contributing to economic and technological restructuring, and promoting production and development Imports contribute to diversifying products in the market, improving living standards and quality of consumption in a number of commodities Importing some goods for which the country does not have a comparative advantage is completely beneficial compared to self-producing or exporting Besides, importing special products can absorb technology or learn some aspects of other countries PART 1: IMPORTS A Definition: Import is a process in international trade that involves purchasing goods or services from other countries Due to limiting factors, this is done legally to meet basic domestic needs Aside from constraints, another reason is to profit Imports are generally made by business actors during the trade process An importer is someone or something that brings goods into the country Because the activity is legal, it is necessary to process customs assistance In accordance with applicable policies, the government will levy a tax on each imported good Because imported goods are obligated to pay, they are more highly priced because the tax rate is already imposed However, not all imported goods are permitted The government, especially the Customs and Excise Directorate, has strict rules in this regard Illegal drugs, animals, and firearms are among the prohibited items B Purposes of Import: - Import promotes technology transfer, resulting in a significant increase in social production, cost and time savings, and social equality - Import means more competition between domestic and foreign goods, acting as a driving force that forces domestic manufacturers to constantly improve, resulting in social development and the purification of production units - Importing will end the monopoly status and completely dismantle the closed economy, self-sufficiency, and self-sufficiency regime - Importing goods and services that the state cannot produce due to geographical aspects or other constraints helps to meet special needs - Importing serves as a link between different domestic and foreign economies and markets, facilitating division of labor and international cooperation whereas promoting a country's comparative advantages based on specialization C Benefits of Import: In terms of trade, importing refers to the purchase of goods or services from another country The importing company or individual then offers these products or services to customers, broadening their purchasing options Reducing costs: Importing products, parts of products, and resources is now more cost effective for many businesses than producing them locally There are multiple examples where entrepreneurs discover high-quality products that are inexpensive even when all import costs are considered Rather than investing in modern, expensive machinery, entrepreneurs choose to import goods and save money In most situations, they end up ordering in bulk in order to get a better price and reduce spending Becoming an industry leader: One of the primary advantages of importing products is the possibility of becoming a market leader in the field of interest Because developing new and improved products is a never-ending process, many companies all over the world take advantage of the opportunity to import new and innovative products before their competing companies Being the first to import a latest brand can quickly propel you to the top of your industry Offering elevated products: Document continues below Discover more from: Public Economics Đại học Kinh tế Quốc dân 16 documents Go to course File-chung 25 ssssssssssssssssssssssssssssss Public Economics 100% (1) Kinh tế công cộng- Handwrite 44 Public Economics 100% (1) Problem set for extenalities in public economics Public Economics None Giải đề KTCC k56 26 Public Economics None 387 736 10 2016 0428 - slide 12 Public Economics None 52 cau trac nghiem dung sai 35 ktcc co dap an Public Economics None Another advantage of importing is the ability to market high-quality products Numerous successful business owners travel to other countries to visit factories and other highly professional sellers in order to find highquality products to import into their own nation Furthermore, manufacturers may provide informative courses and training, as well as introduce standards and practices, to ensure that the company that sells their goods abroad is well prepared This happens because manufacturing companies are quite well conscious that the quality of their products has a significant impact on their reputation D Different types of Import: Importing directly: The buyer and seller transact directly with each other in this manner, and the purchase and sale are not binding The buyer cannot buy without first selling, and the seller cannot sell without first buying Domestic enterprises import goods and materials from foreign markets for consumption in the domestic market To enter into an import business contract, an enterprise must carefully study the domestic market demand for importing materials and equipment, fully calculate the costs to ensure effective import business, and so on Thoroughly negotiate trading conditions with exporters while adhering to national legal corridors and international practices Entrusted import: Entrusted import refers to commercial service activities such as receiving import services This activity is carried out in accordance with the provisions of the Ordinance on Economic Contracts through entrustment contracts between enterprises As a result, an import entrustment contract is formed between domestic enterprises with their own foreign currency capital that want to import a specific type of supplies and equipment but are not permitted to import directly or face difficulties in importing certain materials and equipment Difficulties in locating customers and completing import entrustment procedures for enterprises with international trade functions to carry out imports at their request The authority and decision - making party must provide the entrusting party with financial data, prices, customers, and entrustment order conditions, as well as negotiate and sign the entrustment contract The entrusting party must carry out import procedures and is compensated with an entrustment cost Import and re-export: Each nation has its own definition of re-export, but they all agree on one point of view: re-exporting goods that were imported from other countries but had not yet been processed in the re-exporting country That is, imports are not for domestic consumption, but for profit export to a third country Re-export transactions include imports and exports with the goal of obtaining more foreign currency than the initial investment This transaction always involves three countries: the exporting country, the re-exporting country, and the importing country Import by joint venture: Joint-venture import is the practice of importing goods through the voluntary technical association of enterprises (including at least one direct importexport enterprise) to coordinate skills and techniques techniques to jointly transact and propose policies and measures related to import activities, promote this activity to develop in the most beneficial way for both parties, and share profits if losses are incurred E Impacts of Import: Positive impacts: - Lower-cost goods or materials This is the most common reason for importing, and it is true that you can get products for a fraction of the price here - Better in quality It is frequently possible to find elevated items abroad, particularly when sourcing high-tech goods - Increased variety Many items are sold in other regions are not available in the United States If you put in the effort, you might be able to obtain new items that will sell well in this market - Improved access to new items Despite globalization, obtaining new items is still significantly quicker if you live in the manufacturer's country So, if you want to be first, nothing beats working in the item's manufacturer Negative impacts: - Some businesses import competitors or substitutes for domestic goods Because of all of these factors, locally made products in your country's market may suffer - There is a risk that the currency exchange rate will change dramatically This might result in a loss if the peso falls in value - There is a risk of piracy Regardless of whether it is unlikely, this possibility must be considered - Legal risk This problem comes from both sides What is legal or acceptable in ones country could be a criminal or civil offense in another - Cultural risk Differences in beliefs and practices can lead to a variety of misunderstandings This can be reduced, but not eliminated, by taking a crash course in the culture and practices of the country PART 2: IMPORT OF JAPAN A Overall information about Japan: Japan is also known for having the most advanced and earliest technological, scientific, and industrial innovation in Asia Here are several reasons why: Japan had no invasion and this country escaped colonial fate: Japan Imports By Country Value Year Indonesia $28.72B 2022 Thailand $26.62B 2022 Vietnam $26.43B 2022 Malaysia $26.09B 2022 D Japan import products list: During 2021, the following product groupings have the greatest dollar value in Japan's import purchases: Mineral fuels including oil: US$153.6 billion (20% of total imports) Electrical machinery, equipment: $113.2 billion (14.7%) Machinery including computers: $71.1 billion (9.3%) Pharmaceuticals: $37.2 billion (4.8%) Ores, slag, ash: $33.7 billion (4.4%) Optical, technical, medical apparatus: $28.2 billion (3.7%) Gems, precious metals: $23.9 billion (3.1%) Vehicles: $23.1 billion (3%) Plastics, plastic articles: $17.3 billion (2.3%) 10.Organic chemicals: $16.7 billion (2.2%)1 Mineral Fuels & Oils The energy industry's major import commodities are crude petroleum oil, petroleum gas, and coal Japan's top energy industry exporting nations are According to https://www.worldstopexports.com/japans-top-10-imports/ Saudi Arabia, Australia, and the United Arab Emirates Japan imports mineral fuels and oils worth USD 141.21 billion from throughout the world, making it the world's third largest importer of these items Electrical Machinery and Equipment Japan is a big consumer of electrical machinery equipment, with China accounting for half of all imports in the same year Imported items in this category include telephone sets, cable wire, diodes and transistors, electrical transformers, switching gear, and so on Machinery & Mechanical Appliances Japan is also a significant consumer of equipment and mechanical appliances, ranking eighth in the world Japan's most imported machinery product is an automatic data processing machine This product category also includes turbojets, printing gear, vacuum pumps, and air conditioning units The leading nations supplying machinery equipment to Japan are China, the United States, Korea, Taipei, and Thailand Pharmaceutical Products The nation mostly imports prescription medicines, either mixed or unmixed, accounting for more than 60% of total pharma imports in the same year Japan mostly imports pharmaceuticals from the United States, Germany, Switzerland, Ireland, and France Ores, slag & ash Iron ores, copper ores, and their concentrates are Japan's top mining import commodities Other items imported into Japan include zinc ores, molybdenum ores, manganese ores, lead ores, and titanium ores In addition, the country is a major producer and user of mining products Australia, Chile, and Brazil are the top three markets for mining equipment sold to Japan Vehicles To compete with larger manufacturers, local Japanese automobile manufacturers have partnered with international manufacturers to construct factories and motor vehicles As a result, they mostly import from worldwide nations such as Germany, China, the United States, the United Kingdom, and Thailand Organic Chemicals The major organic chemical imports from Japan include heterocyclic compounds, nucleic acids, ethers, and acyclic alcohols Like many other businesses, the chemical industry's strengths are innovation and product quality Japan's major organic chemical import partners include China, the United States, Korea, Germany, and India Optical, photographic & cinematographic Japan is the fourth largest importer of optical, photographic, and cinematographic equipment, accounting for USD 26.94 billion, or 4.5% of total value The major providing markets for this product group imported by Japan are the United States, China, Germany, Taiwan, and Ireland Japan's 10 leading imports accounted for slightly more than two-thirds (67.4%) of the total value of its foreign product acquisitions E Why Japanese Yen is falling? Since the start of large-scale monetary easing early 2013, the yen has experienced a negative period Despite the currency's depreciation, industrial competitiveness has not improved, and people' buying has fallen It is critical to realize that in the forex trading, the prices of all currencies move in different ways So, while comparing three currencies, we must use one as an intermediate However, because even the money employed as an intermediary fluctuates in value, the comparison is just approximate The yen fell to 149.94 yen/USD on October 20, 2022 In terms of USD, this is the lowest price in 33 years The USD/yen exchange rate was 115 at the start of 2022, implying that the yen had depreciated by 30% The drop in the value of the Japanese yen in relation to the Vietnamese dong is attributable to the following factors: The yen declined in value because the Vietnamese dong has a favorable association with the US dollar Because the JPY-USD exchange rate fell to a four-year low, the JPY-VND declined substantially as a result of the positive association The decrease in yen price, or JPY-VND and JPY-USD decrease, is due to the increase in the amount of JPY sold This happens because (1) the trend of M&A (M&A) abroad of Japanese companies causes businesses to buy foreign currency to pay for the purchase of foreign businesses, causing the amount of yen in circulation to increase (2) oil prices increased continuously while Japan's oil consumption output was entirely thanks to crude oil imports from abroad This means that to pay for the increased import fees for crude oil, Japan has to buy foreign currency and sell yen, which increases the amount of yen in circulation The decrease in the price of yen, or JPY – VND and JPY – USD decrease, is due to the increase in the amount of USD purchased JPY – USD decreased due to the monetary policy of the Central Banks of Japan and the US The yen depreciated also due to the maintenance of the super-loose monetary policy (quantitative easing or quantitative easing) of the Bank of Japan (BoJ) Since Prime Minister Shinzo Abe, this monetary policy has been one of the three spearheads of Abenomics economic policy The spearhead of "quantitative easing" to raise the inflation rate and revive the Japanese economy has long been sinking deeply into a state of deflation with no way out FED announced a sudden high 10-year bond yield This move by the Fed, according to the WSJ, is due to the reopening of business activities, increased consumer demand and a decrease in the number of corona virus infections in the US In response to Reuters, Ray Attrill, head of foreign exchange strategy at National Australia Bank, stated, "The major driver of the exchange rate movement The current JPY-USD exchange rate is related to a rise in US government bond rates Japan posted its largest trade imbalance in history, owing mostly to currency devaluation and rising energy and raw material prices According to the Japanese Ministry of Finance, Japan's exports climbed by 18.2% last year to 98.19 trillion yen, the highest level ever, but imports increased by 39.2% This resulted in Japan's trade balance having a deficit of 19,970 billion yen (equal to 155.27 billion USD), the biggest since records began in 1979 Prior to then, Japan's largest trade deficit was 12.820 billion yen in 2014 Japan's balance of trade was 1,450 billion yen negative in December 2022 alone The explanation for this is that, although exports climbed by 11.5% to 8,790 billion yen, imports increased by 20.6% to 10.240 billion yen According to analysts, Japan's trade imbalance reached a new high previous year as the yen fell against the majority of other hard currencies, making imported products more expensive Additionally, the oil price and gasoline, as well as many other raw commodities, has risen as a result of the RussianUkrainian armed confrontation, the US-China geopolitical competition, and the interruption of various supply networks It also led Japan's import turnover to skyrocket, resulting in a rise in the trade imbalance PART 3: SUGGESTIONS FOR VIETNAM A The relationship between Vietnam and Japan in the economy: Japan has been developing its commercial connections with Vietnam over the years In fact, it was the first G7 country to recognize Vietnam's market economy status in 2011 The Vietnam-Japan Economic Partnership Agreement (VJEPA), agreed in December 2008 (and entered into force in October 2009), offers a framework for promoting trade and investment between the two nations [4] The ASEAN-Japan Comprehensive Economic Partnership (AJCEP) between Japan and the five ASEAN nations (Laos, Myanmar, Singapore, Thailand, and Vietnam), which was introduced in December 2008 and will be revised in August 2020, widens the areas of cooperation between Japan and ASEAN These two frameworks produced ideal circumstances for the development of economic links between Vietnam and Japan Aside from the aforementioned institutional arrangements, Japan and Vietnam have benefited from their complementary and non-competitive economic structures Japan is the largest official development assistance (ODA) provider in Vietnam, with nearly US$24 billion in 2019; the second-largest investor, with US$1.73 billion in the first three quarters of 2020; and the fourth largest commercial partner, with US$28.6 billion in two-way trade revenue between January and September 2020 As of September 2020, Japan had invested in around 4,600 FDI projects across Vietnam, totaling approximately US$60 billion in registered capital The structure of the two nations' import and export products, in particular, is obviously complimentary; there is no direct competition Vietnam primarily produces and sells to Japan seafood, crude oil, textiles, electrical wires and cables, timber and wood products, computers and components, coal, and various types of shoes Meanwhile, Vietnam imports from Japan commodities for industrial production, such as machinery, equipment, tools, and spare parts, electronic products and components, various types of iron and steel, textiles, auto parts, plastic raw materials, chemicals, raw materials for textile, garment, and leather B Vietnam import activities: - In the commodity import and export strategy for the period 2011-2020 of the Prime Minister, it is clear that the export scale needs to be achieved: To strive for the growth rate of imports to be lower than the growth rate of exports Specifically, the stated strategy should strive for the average